The mediating effect of high performance work system on ISO 9001:2008 practices and organizational performance among government agencies in Sabah, Malaysia

• Main Author: Rainal Lasumin
• Format: Thesis
• Language: English; English
• Published: 2016
• Subjects: HD58.7-58.95 Organizational behavior, change and effectiveness. Corporate culture
• Online Access: https://eprints.ums.edu.my/id/eprint/40564/1/24%20PAGES.pdf; https://eprints.ums.edu.my/id/eprint/40564/2/FULLTEXT.pdf; https://eprints.ums.edu.my/id/eprint/40564/

In response to the increasingly changing customer’s and stakeholder’s expectation, the Malaysian Government opted to implement ISO 9000 standard on its entire machinery. However, after 20 years of the standards adoption in the government agencies, the implementation is much criticized especially on increasing customer complaints, low productivity, lower employees’ morale, higher delivery cost and low overall perceived quality. Consequently, many studies have been conducted in view of the above. However, the consensus among the scholars regarding the effect of ISO 9000 implementation and organizational performance is still inconclusive. Issues like the level of comprehensiveness in ISO 9000 implementation, inconsistent variables, and differing methodologies might be of some major variances. In a view to understand the implementations issue, this study provide a theoretical framework illustrating how high performance work system (HPWS) mediate the relationship between ISO 9001:2008 practices and organizational performance among the government agencies in Sabah, Malaysia. The eight latent constructs which are the facets of ISO 9001 standards are identified as customer focus, leadership, involvement of people, process approach, system approach to management, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships. Questionnaires are used to gather information from 98 ISO certified government agencies in Sabah through purposive sampling technique. The number of returned and usable questionnaires is 90 or 91.8%. SPSS 19 and Smart PLS 2.0 are used to analyze the relationship between the latent constructs. The findings demonstrated that ISO 9001:2008 practices and HPWS have positive and significant relationship on organizational performance. Similarly, the relationship between ISO 9001:2008 practices and HPWS is also significant. The mediating effect of HPWS on the relationship between ISO 9001:2008 practices and organizational performance is also found to be significant. In addition to the theoretical and methodological implications, this study provides practical relevance to the management of ISO certified organization to reevaluate their strategic implementation of the ISO 9001:2008 practices by integrating HPWS. The integration of HPWS in implementing ISO 9000 in the government agencies marked the major contribution of this study.